The initial months of the financial year 2021 (FY21) saw a slew of delisting offers announced by India Inc. Vedanta and Adani Power announced their delisting proposals in May while Hexaware and Allcargo made the announcements in June and August, respectively. While Adani Power and Allcagro’s delisting proposals are still awaiting shareholders' approval, here's a look at the other two - Hexaware and Vedanta.
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Baring PE could successfully delist Hexaware, but Anil Agarwal ran out of luck to delist Vedanta from Indian bourses.
Delisting Announcements in FY21
The successful delisting of Hexaware excited the Street as a lot of traders and investors built up positions in Vedanta in anticipation of quick bucks. However, that wasn’t the case as Vedanta failed to secure 90 percent of shares held by public investors for the delisting process to be successful.
However, the larger point is while stock market participants get immediately excited about prospects of a quick buck as soon as delisting is announced, the recent history suggests more shareholders have lost money on failed delistings than gained on successful ones.
Delistings – Historical Trends